JCM STAFF SIDE SECRETARY WRITES TO GOI FOR CORRECT COMPUTATION OF
DA FORMULA w.e.f. 1.1.2016
No.NC/JCM/2016
Dated: September 6,
2016
The Secretary (Expenditure),
Ministry of Finance,
(Government of India),
North Block, New Delhi-110 001
Dear Sir,
Sub: Future computation of Dearness
Allowance and adoption base index figure to Revised Minimum Wage – Regarding
The revised pay structure, as recommended by the 7th CPC, was given effect as
on 01.01.2016 as per the Government’s Notification. The Dearness
Allowance, which was computed at 125% ( i.e 125.75 fraction of 0.75 being
ignored), got merged with Pay as on that
date. The 7th CPC has not indicated as to what base figure of AICPI (IW) the
Revised Wages will relate to hereafter wards. As you are aware, the actual DA
that was due as on 01.01.2016 was 125.75. It is only due to the practice of
ignoring fraction; the DA was determined at 125%. No
doubt,
the said practice had not been impacting very much except for the postponement
of the benefit by six months. It is, therefore, necessary that, Revised Wages
are related to a base index figure equivalent to actual Dearness
Allowance percentage of 125 that stands merged as on 01.01.2016. This
is more so due to the fact that there is no possibility of the ignored fraction
of 0.75 being reckoned for any computation in future.
We, therefore, request that, 12 monthly average, which stood at 261.33 as on
31.12.2015, may be taken at 260.46, which would provide the exact percentage of
DA at 125. The future percentage increase in DA in other words may be computed
with the base figure of 260.46. The next instalment of DA, which has become due
as on 1.07.2016 if computed on the above basis of 260.46, shall work out to
3.28%. On ignoring the faction, the DA with effect
from 01.07.2016 shall be 3%. We, request you to kindly take the above into
account and issue orders for grant of 3% DA w.e.f. 01.07.2016.
Sincerely yours
(Shiva Gopal Mishra)
Secretary (Staff Side)
National Council (JCM)
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